401k Investing Watching the Market For Our Time To Get In or Stay Out
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Watch the 401k investing video here for a follow up to what we talked about the day before. There are very exciting times, however we must be VERY careful. If you are conservative then it’s easy, you are staying out and waiting for a more conservative time to get in because all the longer term conditions point to the awareness that the markets are still biased to the downside.
Is it time to invest my 401k or is this a Bear Rally?
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401k investing can be quite confusing for a new investor. Today we are going to make some sense of this big bad bear stock market. Is it time to invest your 401K? Or will this market keep going down? Here is the thing that you have got to realize. No one has got it all figured out, that is why there are the bears and the bulls. So analyzing the markets with good sound technical analysis principles will yield favorable results. We not only teach our students how to use the tools, but also how to “see” the markets, and how the move, how they behave. We are going through classical behaviors now at this time. Those behaviors have been measured throughout history using statistical analysis and we have probabilities that we use for each situation. We also have specific thresholds that tell us when those probable situations don’t work out resulting in very small losses when we are wrong and very large profits when the markets behave just as they always have done.
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Right now is a very sensitive time. Neither in this video or on any of our blog posts do we ever give trading advice because we are doers and teachers not advice givers. With that said an investor has to determine the amount of risk that he or she is willing to take. If you are fresh out of college or you have many more years ahead of you before retirement then you may want to take on more risk, be more aggressive in you investment strategy. If you are close to retirement you may want to be more conservative and take more reliable signals with much more confirmation ensuring success with the only giving up some profits for that security.
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The following video shows an analysis of the market and how we have already profited by managing our 401k account to more advanced means. However for those conservative investors we point out that it may take a little while for the system to come down and the Volatility index to come down.
Leave some comments for us and let us know what you think, For those out there that are out to squash people, If you’ve got something mean to say just keep that negativity to yourself. We dismiss all mean, ugly, negative vibes because we live in infinite abundance, and uplifting, positive thoughts and emotions, We have no room or desire to attract negativity into our lives, so save yourself the effort of attracting more negativity to your life and say something positive, or offer constructive criticism because we love that!
It looks like a bottom may be here, but remember we don’t speculate, we observe and let the markets tell us that we have found a bottom. It depends on what comes out over the weekend but we may be looking at a significant move next week.
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We should then test the bottom, if the bottom cannot be broken then we may have a confirmation that we are indeed at a bottom. We are watching and waiting to see if will be time to invest.
Learn how to apply these principles. Start your financial education today and master investing with only a few minutes a week, learn how to invest your 401k and when to move to safe investments when risks are high.
Do I Invest In My 401k Now? How Do I Learn How To Invest & Manage My 401k
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I’ve been getting a lot of questions from people asking me if it is time to invest their 401k? For those of you who have gotten out of the markets and are now looking for a time to get it, THIS IS NOT THE TIME TO GET IN. As investors we only get into the markets when they are trending up. We do not know how deep this recession will go. The worst advice given (not that I am giving investing advice, because I don’t do that), is that you should buy on the way down. If you want a guaranteed way to lose money, then do just that. Until then I’m going to wait until the bottom forms, and until I get a confirmed uptrend, and then I go all in. I will make more rate of return on my investment than those guys by magnitudes more.
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If you are still in the markets and you are down 30-40%, I can’t tell you or advise you what to do, but wouldn’t it be a shame to move money when you find out that we are are the bottom? If you move anything, you will realize those losses, meaning that you will actually lose your investment. You account actually has owns shares of an asset. As long as you don’t sell those shares you own something. Now you are at that point that you could wait it out. The markets have ALWAYS come back, it just would have been nice to keep all the profits from the end of last year, and been able to multiply them by getting out then (as I alerted my students via my subscription blog), and investing after we find a bottom.
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Check out this video for a better view of the markets and for more information.
CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. Hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading.
